GroupM MENA executives say Saudi Arabia's media and creative industry is on a steady growth trajectory
DUBAI: WPP's media investment arm, GroupM MENA, aims to “create the next generation of media where advertising works better for people,” said Amer El-Hajj, who took over as CEO in September last year.
“This is our ‘North Star’ goal,” he told Arab News. In support of this goal, the company has set new standards for customer satisfaction, talent cultivation and industry influence, and is “actively defining our offerings, best practices and strategies to stay ahead of industry trends,” he added.
GroupM revealed that it has acquired 10 new clients in the first six months of this year, making 2024 its most successful year in the region, with billings growing by 40 percent compared to 2022. The businesses that GroupM has invested in include L'Oreal Middle East, Al-Fardan Jewelry, Americana Foods, Diriyah Gate Development Authority, telecommunications company du and snack food company Mondelez.
The success of the organisational transformation was attributed to a new business development team, restructured procurement, finance and operations departments and a focus on hiring new talent while retaining and developing existing ones.
The company said many of the new hires are at group level, including the regional managing director of customer experience, data and technology, director of e-commerce, head of procurement and head of marketing and communications.
Like other industries, the media sector is increasingly relying on the latest technological developments. For example, the media buying process is becoming increasingly automated due to developments in artificial intelligence, which can use algorithms to buy ad slots in real time, target different audiences on different platforms, or even display different ad messages based on factors such as time of day or type of audience.
A 2023 PwC report found that 67% of leaders in the technology, media and telecommunications sectors believe emerging technologies such as artificial intelligence (AI) pose a threat to their current business models. However, El-Hajj said GenAI enables real-time content creation that can be tailored to the specific needs of the target audience, which can improve the automation and efficiency of advertising campaigns.
He added that within an organization, it can be used as a key tool to improve operational processes, including repetitive tasks, resulting in greater efficiency and more cost-effective outcomes.
However, he cautioned that businesses should not rely solely on AI without human involvement and proper quality control.
“AI may lack the understanding of our culture and habits, which is essential for creative advertising,” El-Hajj said. “Furthermore, navigating regulatory complexities and addressing data privacy issues is a key consideration.”
The ongoing evolution of technology means that businesses need to constantly develop the skills of their workforce. A recent World Economic Forum report, “AI’s Transformational Opportunities for ICT Jobs,” found that 58 percent of employees believe their job skills will change significantly over the next five years as a result of AI and big data. Additionally, 92 percent of technology roles are expected to evolve with advances in AI.
GroupM has a core goal of “creating value not only for our clients but also for the communities in which we do business.” To this end, the company is committed to developing its local Saudi workforce, and more than 45 percent of the company’s employees are Saudi Arabian.
The company has also launched a university and academy program to help attract, recruit, train and educate young talent to help drive the company’s growth and increase its market share in the Kingdom, he added.
These initiatives come at a time of broader change and growth in Saudi society, which he said is creating great opportunities for advertisers and agencies.
“Because the majority of the population is young, with the majority under 30 years old, there is more investment in digital advertising, social media marketing and creating content that is tailored to local tastes,” El-Hajj said.
He added that Saudi Arabia is developing and diversifying its economy, driven by the goals of Saudi Vision 2030, resulting in a growth in the number of small and medium-sized enterprises in the advertising and digital sectors. In addition, the country's authorities have eased restrictions on cultural activities, which “stimulates the demand for creative content and digital media consumption.”
With these developments, “Saudi Arabia’s media and creative industries are set to continue to expand,” with the aim of “positioning the Kingdom as a regional media and entertainment hub,” Elhaj said.
